# Gold slides below $1,295 as options turn sharply bearish

**Published:** 2026-07-17T18:59:02.585Z  
**Topic:** Gold  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/b72ba39e-8f88-4d6e-be20-00bcd9084d26

Gold price breaks $1,295 support, GLD ETF down 25% from February high, options heavy on puts – see the key levels and market impact

Gold fell below the $1,295 support level, sinking to a low near $1,271, and the move coincided with a surge in put‑option buying on the GLD ETF, signaling heightened bearish sentiment among traders【1】.  

| At a glance | |
|---|---|
| Gold price | $1,271 low (below $1,295 support) |
| GLD ETF | 25% down from Feb intraday record |
| Put premium | $130 million of $200 million total options premium |
| Market reaction | Dollar up, equities pressured, yields edging higher |

## Technical breakdown of gold’s decline  
The hourly chart shows two bearish trend lines converging near $1,275‑$1,279, with the 50‑hour simple moving average also acting as resistance. After breaking the $1,300 and $1,295 supports, gold slipped beneath the $1,285 level and the 50‑hour SMA, eventually testing the 23.6% Fibonacci retracement of the recent $1,290‑$1,271 swing. Without a clear break above $1,278‑$1,280, further downside to the $1,270‑$1,271 area—and potentially $1,265—remains likely【1】.  

## Options market reflects deepening bearish bets  
GLD’s options flow turned sharply bearish on Wednesday, with traders selling more calls than buying and allocating $130 million of the $200 million premium to puts. The most active put contract was the in‑the‑money 380‑strike expiring the same day, while the second‑most active was a 240‑strike set to expire in June 2028, a position that implies a roughly 40% price decline over the next two years【2】.  

## Broader market context  
The gold sell‑off came as the U.S. dollar firmed, putting additional pressure on commodity prices. Crude oil, while still above $62, faced resistance near $64.70, suggesting a broader risk‑off environment across commodities【1】. Equity markets felt the ripple, with risk‑averse investors shifting toward safer assets amid the metal’s technical breakdown and the aggressive put positioning.  

## What to watch  
- **Key support levels:** $1,270‑$1,271 and $1,265 on the gold chart.  
- **Options activity:** Volume and premium on GLD puts, especially the 380‑strike and 240‑strike contracts.  
- **Upcoming data:** U.S. inflation releases and Federal Reserve commentary later this week, which could influence the dollar and, by extension, gold’s trajectory.  

The breach of $1,295 and the surge in put buying suggest that traders expect further downside, but the next test of $1,278‑$1,280 will be crucial to confirm whether the bearish trend can sustain or a reversal may emerge.

## Sources
1. Fxopen — [Gold Price Turns Bearish, Crude Oil Facing Key Resistance](https://fxopen.com/blog/en/gold-price-turns-bearish-crude-oil-facing-key-resistance/)
2. CNBC — [As gold's tumble continues, traders bet the pain may last for two more years](https://www.cnbc.com/2026/06/10/as-golds-tumble-continues-traders-bet-the-pain-may-last-for-two-more-years.html)
3. Century — [Reversal Candlestick Patterns: Top Bullish & Bearish Signals for...](https://www.century.ae/en/blog/reversal-candlestick-patterns-trading-guide/)

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Cite as: TrendWatcher, "Gold slides below $1,295 as options turn sharply bearish", https://www.trendwatcher.in/article/b72ba39e-8f88-4d6e-be20-00bcd9084d26